Florida Public Service Commission native order document 02817-2023

OCR transcription for search; preserved printed pages are authoritative

FILED 4/24/2023
DOCUMENT NO. 02817-2023
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Joint petition for approval of first DOCKET NO. 20230012-EU
amendment to a territorial agreement, by ORDER NO. PSC-2023-0141-PAA-EU
Tampa Electric Company and City of Bartow, || ISSUED: April 24, 2023

Electric Department.

The following Commissioners participated in the disposition of this matter:

ANDREW GILES FAY, Chairman
ART GRAHAM
GARY F. CLARK
MIKE LA ROSA
GABRIELLA PASSIDOMO

NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING AMENDMENT OF TERRITORIAL AGREEMENT

BY THE COMMISSION:

NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature and will become final unless a person whose interests
are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).

Background

On January 9, 2023, Tampa Electric Company (TECO) and the City of Bartow, Electric
Department (Bartow), collectively the joint petitioners, filed a petition seeking our approval of
an amendment to their current territorial agreement in Polk County (the proposed amendment).
TECO serves retail customers in Hillsborough County and in portions of Polk, Pinellas, and
Pasco Counties. Bartow serves retail customers within and adjacent to the City of Bartow, Polk
County, Florida.

In 1985, we approved the original territorial agreement between TECO and Bartow.' The
instant petition seeks to amend the territorial boundaries to accommodate development within the
Ranches at Lake McLeod subdivision (Ranches at Lake McLeod or subdivision), as shown in
Attachment B to this order. All other terms and conditions of the current agreement, shown in
Attachment A, would remain in place.

' Order No. 15437, issued December 11, 1985, in Docket No. 19850148-EU, in re: Joint petition for approval of
territorial agreement between City of Bartow and Tampa Electric Company.

ORDER NO. PSC-2023-0141-PAA-EU
DOCKET NO. 20230012-EU
PAGE 2
During the review of this joint petition, our staff issued one data request to the joint
petitioners on March 1, 2023, for which responses were received on March 10, 2023. We have
jurisdiction over this matter pursuant to Section 366.04, Florida Statutes (F.S).
Decision
Pursuant 	to 	Section 	366.04(2)(d), 	F.S., 	and 	Rule 	25-6.0440(2), 	F.A.C., 	we 	have
jurisdiction to approve territorial agreements between and among rural electric cooperatives,
municipal electric utilities, and other electric utilities. Unless we determine that the amendment
to the territorial agreement will cause a detriment to the public interest, the amendment should be
approved.2
A. Proposed Amendment to the 1985 Territorial Agreement
A new residential subdivision, known as Ranches at Lake McLeod, is currently under
development in Polk County. A section of the existing service boundary runs through the
planned subdivision. The joint petitioners explained that the current service boundary runs
through proposed home lots, across planned streets, and without regard to future utility easement
areas in the subdivision.
The joint petitioners stated that they had discussions for the provision of electric service
to the new subdivision, which led to a mutual agreement between TECO and Bartow regarding
the most efficient, reliable provision of electricity to the new subdivision. Under this agreement,
the revised boundary lines would follow planned streets and along lot lines within the
subdivision. The joint petitioners assert that this proposal would allow both utilities to have
sufficient access to the areas to be served. Furthermore, the joint petitioners assert that the
proposed territorial amendment would not cause a decrease in the reliability of electric service to
the existing and future ratepayers of either utility and would prevent the uneconomic duplication
of facilities. Pursuant to Rule 25-6.0440(1)(f), F.A.C., the joint petitioners provided a map
depicting the proposed boundary line of the subdivision. The map is shown in Attachment B to
this order.
Pursuant to Rule 25-6.0440(1)(b), F.A.C., the joint petitioners provided the original 1985
territorial agreement, shown in Attachment A to the order. In paragraph 26 of the petition, the
joint petitioners explained that the terms and conditions of the original 1985 territorial agreement
remain in effect; the only proposed change is to modify the boundary line within the new
subdivision. Furthermore, the joint petitioners explained that the 1985 territorial agreement
continues to remain in effect until terminated or modified by the joint petitioners.
Under the proposed division of the development, TECO would serve 541 lots, including
140 in the North Ranch segment of the subdivision, and Bartow would serve 469 lots. In
paragraph 19 of the petition, the joint petitioners explained that the North Ranch segment of the
subdivision is wholly within TECO’s service area and was not part of the negotiations leading to
2 Utilities Commission of the City of New Smyrna Beach v. Florida Public Service Commission, 469 So. 2d 731 (Fla.
1985).

ORDER NO. PSC-2023-0141-PAA-EU
DOCKET NO. 20230012-EU
PAGE 3
this boundary line amendment. Aside from the unaffected North Ranch segment, this subdivision
has not yet been developed. Therefore, there are no current customers or facilities to be
transferred as a result of the proposed territorial amendment. Similarly, there are no affected
customers to be notified as required by Rule 25-6.0440(1)(d), F.A.C.
B. Conclusion
After review of the petition, the proposed territorial amendment, and the joint petitioners’
responses to our staff’s data request, we find that the proposed amendment to the territorial
agreement between TECO and Bartow in Polk County shall be approved. We find that the
proposed territorial amendment will enable TECO and Bartow to redefine their existing service
boundary to better serve future customers in Polk County and will not cause a detriment to the
public interest. Furthermore, it appears that the proposed territorial amendment eliminates any
potential uneconomic duplication of facilities and will not cause a decrease in the reliability of
electric service.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the joint petition for
amendment to the territorial agreement between Tampa Electric Company and the City of
Bartow shall be approved. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that in the event this Order becomes final, this docket shall be closed.

ORDER NO. PSC -2023 -01 4 1- PAA - EU
DOCKET NO. 202300 12- EU
PAGE4
By ORDER of the Florida Public Se rvice Commission thi s 24th day of Apri l, 2023.
DD
J/11(
Florida Public Service Commission
2540 Sh um ard Oak Boulevard
Ta ll ahassee, Florida 32399
(850) 4 13-6770
www.floridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the tim e of
iss uance a nd , if applicable, interested persons.
NOT IC E OF FURTHER PROCE ED INGS OR JUDICIAL REVIEW
The Florida Public Service Commiss ion 	is required by Section 	120.569( I), Florida
Statutes, to not ify parties o f any ad ministra ti ve hearing that is available under Section 120.57,
Florida Statutes, as wel l as the procedures and time limits that apply . This notice shou ld not be
construed to mean al l requests for an ad mini strative hear in g w ill be granted or result in the re lief
so ught.
Med iation may be ava il ab le on a case-by-case bas is. 	If med iation is conducted, it does
not affect a substantially interes ted person's right to a hea rin g.
The action proposed herein 	is preliminary in nature. Any per so n whose substantial
in terests are affected by the action proposed by this order ma y fi le a petition for a forma l
proceeding, in the form provided by Rule 28 -1 06.20 I, Florida Administrative Code. 	Th is
petition mu st be received by the Office of Commiss ion Clerk, 2540 S hum ard Oak Bou leva rd ,
Tallahassee, Florida 32399-0850, by th e close of bu siness on May 15. 2023.
In the absence of such a petition, th is order sha ll become fina l and effective up on the
iss uance of a Consummat in g Order.
Any objection or protest fil ed in this/these docke t( s) before the issuance da te of thi s order
is considered abandoned unl ess it sa ti s fies the foregoing conditions and is renewed with in the
spec ifi ed protest period.

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page | of 8
PAGE 5

iz APPENDIX Wan |

TERRITORIAL BOUNDARY AGREEMENT
BETWEEN
TAMPA ELECTRIC COMPANY
AND
THE CITY OF BARTOW, FL.

Section 6.1 THIS AGREEMENT, made and entered into this Sern day of
APR __, 1985, by and between TAMPA ELECTRIC COMPANY, a corporation
organized and existing under the laws of the State of Florida, herein referred to as
"TECO" and the CITY of BARTOW - Electric Department, a city incorporated and
existing under the laws of the State of Florida, herein referred to as "BARTOW";

WITNESSETH:

Section 0.2 WHEREAS, TECO is presently providing retail electric service in a
portion of Polk County near and adjacent to the BARTOW city limits.

Section 0,3 WHEREAS, BARTOW is presentiy providing retail electric service in a
portion of Polk County near and adjacent to the BARTOW city limits.

Section 0.4 WHEREAS, the areas in which each party is supplying retail electric
service are in close proximity and abut in Polk County, TECO and BARTOW desire to
cooperate in the public interest in supplying service in & manner so as to avoid
uneconomic waste, potential safety hazards and other adverse effects that would result
from duplication of electrie facilities in the same area.

Section 0.5 WHEREAS, the execution of this AGREEMENT by the parties hereto is
not conditioned upon the acceptance of or agreement to any other contractual
arrangements pending or contemplated by or between the parties.

Section 0.6 NOW, THEREFORE, in consideration of the foregoing premises and of
the mutual benefits to be obtained from the covenants herein set forth, the parties

hereto do hereby agree as follows:

1 EXHIBIT A

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page 2 of 8
PAGE 6

ARTICLE I
TERM OF AGREEMENT
Section 1.1. TERM: After this AGREEMENT becomes effective pursuant to Section
3.4 hereof, it shall continue in effect until termination or until modification shall be
mutually agreed upon, or until termination or modification shall be mandated by
governmental entities or courts with appropriate jurisdiction. Fifteen (15) years from
the date above first written, but not before, either of the parties hereto shall have the
right to initiate unilatera! action before any governmental entity or court with

appropriate jurisdiction, seeking to obtain modification or cancellation of this

AGREEMENT.
ARTICLE
ESSENCE OF AGREEMENT
Section 2.1 The boundary line delineating the retail electric service areas of the

parties is marked on the map attached hereto and labeled Exhibit A, and said boundary

line is further described in (a) and (b) as follows:

WINTER HAVEN
(a) Commence at the southeast corner of the northeast 1/4 of
Section 30, Township 29, Range 26 east, run thence north along the
east boundary of said Section 30 to the northeast corner of said
Section 30, run thence west along the north boundary of said Section
30 to the southeast corner of the southwest 1/4 of Seetion 19,
Township 29 south, Range 26 east, run thence north to the southeast
corner of the southwest 1/4 of Section 18, Township 29 south, Range
26 east, run thence west along the south boundary of said Section 18

to the southwest corner of said Section 18, run thence north along the

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page 3 of 8
PAGE 7

west boundary of said Section 18 to the intersection of the said west
boundary and the south right-of-way of State Road 559, run thence
westerly in a straight line along the projected right-of-way of State
Road 559 to the easterly right-of-way of line of State Road 555, run
thence southwesterly along said right-of-way line to a point 900 feet
west of the east boundary of Section 22, Township 29 south, Range
25, run thence south parallel to and 900 feet west of the east
boundary of said Section 22 to the south boundary of said Section 22,
run thenee west along the south boundaries of Sections 22 and 21,
Township 29 south, Range 25 east, to the southwest corner of said
Section 21, run thence north along the west boundary of said Section
21 into Lake Hancock to a point of intersection with the westerly
projected north boundary of Section 22, Township 29 south, Range 25
east, run thence west along the projected north boundary of said
Section 21 to a point in Lake Hancock located 1,800 feet east of the
southeast corner of Section 13, Township 29 south, Range 24 east, for

a point of termination. All lying in Polk County, Florida.

PLANT CITY
(b) Commence at the southeast corner of the southwest 1/4 of
Section 3, Township 31 south, Range 24 east, run thence north to the
northeast corner of the northwest 1/4 of Section 15, Township 30
south, Range 24 east, run thence east along the north boundaries of
Sections 15 and 14, Township 20 south, Range 24 east, to the

northeast corner of the northwest 1/4 of said Section 14, run thence

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page 4 of 8
PAGE 8

north to the center of Section 2, Township 30 south, Range 24 east,

run thence west to the center of Section 3, Township 30 south, Range

24 east, run thence north to the northeast corner of the northwest

1/4 of said Section 3, run thence east along the north boundary of

saij Section 3 to the southeast corner of the southwest 1/4 of Section

34, Township 29, south Range 24 east, run thence north to the

northeast corner of the northwest 1/4 of said Section 34 for a point .

of termination. All lying in Polk County, Florida.
Section 2.2 The area generally north of said boundary line (a) and generally west of
said boundary line {B) is reserved to TECO (as relates to BARTOW), and the area
generally south of said boundary line (a) and generally east of said boundary line (b) is
reserved to BARTOW (as relates to TECO), with respect to service to retail customers.
Section 2.3 The parties agree that neither party, except as provided in Section 2.4,
will provide or offer to provide electric service at retail to future customers within the
territory reserved to the other party.
Section 2.4 The parties recognize that, in specific instances, good engineering
practices (or economic constraints on either of the parties) may from time to time
indicate that small service areas and/or future retail electric customers should not be
served by the party in whose territory they are located. In such instances, upon written
request by the party in whose territory they are located to the other party, the other
party may agree in writing to provide service to such small service areas and/or future
retail electric customers, and it is understood that no additional regulatory approval
will be required for such agreement(s), By the execution of this AGREEMENT, the
parties acknowledge that TECO may continue to provide retail electric service to
existing and future phosphate customers and/or customers served at transmission

voltage (69 KV and above) in the area of Polk County reserved for BARTOW.

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page 5 of 8
PAGE 9

Section 2.5 This AGREEMENT shail apply only to the provision of retail electric
service by the parties hereto and shall have absolutely no application or effect with
respect to either party's sale of "bulk power supply for resale," which is defined to mean
all arrangements for supply of electric power in bulk to any person for resale, including
but not limited to, the taking of utility responsibility for supply of firm power in bulk to
fill the full requirements of any person engaged or to be engaged in the distribution of
electric power at retail, and/or interconnection with any persons for the sale or
exchange of emergency power, economy energy, deficiency power, and such other forms
of bulk power. sales or exchanges for resale made for the purpose or with the effect of
achieving an overall reduction in the cost of providing electrie power supply.

Section 2.6 Nothing in this AGREEMENT is intended to affect the power plants,
transmission lines, or substations of one party which are now located, or may in the
future be located in the service area of the other party, and any problems between the
respective parties involving these types of facilities shall be settled at the General

Office level of the parties.

ARTICLE Il

MISCELLANEOUS PROVISIONS ©

Section 3.1 The failure of either party to enforce any provision of this
AGREEMENT in any instance shall not be construed as a waiver or relinquishment on its
part of any such provision but the earne shall nevertheless be and remain in full foree
and effect.

Section 3.2 Neither party shall assign, transfer or sublet any privilege granted to it
hereunder without the prior consent in writing of the other party, but otherwise, this
AGREEMENT shall insure to the benefit of and be binding upon the successors and

assigns of the parties hereto.

ORDER NO. PSC-2023-0141-PAA-EU Attachment A
DOCKET NO. 20230012-EU Page 6 of 8
PAGE 10

Section 3.3 This AGREEMENT shall be governed by the laws of the State of
Florida,

Section 3.4 The parties recognize and agree that both companies are subject to the
jurisdiction of the Florida Public Service Commission (hereinafter called the
“Commission"} and further agree that this AGREEMENT shall have no force and effect
unless and unti] tt is submitted to and approved by the Commission in accordance with
applicable procedures. The parties further agree that the AGREEMENT, if and when
approved by the Commission, shall be subject to the continuing jurisdiction of the
Commission and may be terminated or modified only by Order of the Commission. No .
modification or termination of this AGREEMENT by the parties hereto shall be
effective unless and until approved by the Commission. Each party agrees to promptly
notify the other in writing of any petition, application or request for modification of
the AGREEMENT made to the Commission and to serve upon the other party copies of
ail pleadings or other papers filed in connection therewith,

Section 3.5 This AGREEMENT shail be effective on the date it is approved by the

Florida Public Service Commission in accordance with Section 3.4 hereof.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
executed by their duly authorized officers, and copies delivered to each party, as of the

day and year first above stated.

ORDER NO. PSC-2023-0141-PAA-EU
DOCKET NO. 20230012-EU
PAGE 11

BY:

Approved as to correctness

and form:

Attachment A
Page 7 of 8

TAMPA ELECTRIC COMPANY

BY: 0 Af

ice President

M4, GE 35

CITY OF BARTOW, FL

a
ne, ae

VF wayor Date

Approved as to substance:

By: \¢ ‘ By: é
TN Lory A Va City Manager \

ORDER NO. PSC-2023-0141-PAA-EU DOCKET NO. 20230012-EU PAGE 12
Attachment A Page 8 of 8
V
Lake
Howard
WINTER LO-
HAVEN N.
JUNGEE
Lake
Eloisa
EAGLE LARE
Wintersel
WAHLAND
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McLeod
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EXHIBIT "A"
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Lake Buffum
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Lake - Hancock

ORDER NO. PSC-2023-0141-PAA-EU Attachment B
DOCKET NO. 20230012-EU Page | of 1
PAGE 13

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